MercoPress. South Atlantic News Agency

Peru, China agree zero tariff on 90% of bilateral trade items

Peruvian pte. Alan Garcia and his Chinese counterpart Hu Jintao.

A free trade agreement to be signed by China and Peru in March will go into effect in the second half of 2009, if everything goes as planned, the Chinese Ministry of Commerce announced.

Beijing and Lima agreed on zero tariffs for more than 90 per cent of the products exported between the two countries. The agreement will benefit China's light machinery industry as well as those of its electronics, domestic appliances, heavy machinery, automobile engines, chemical items, vegetables and fruit. Peru's fishmeal and aquatic products industry, as well as its mining sector, among others, will be reaping benefits from the accord, Reuters reports. Chinese President Hu Jintao is currently in Lima on an official tour to take part in the XVI Leaders Summit of the Asia-Pacific Economic Cooperation (APEC) Forum, to be held on 22 and 23 November. Jintao and Peruvian president Alan Garcia are aiming to deepen their bilateral political relationship, expand cooperation, promote exchange in various areas and maintain a close collaborative union on different levels. Peru offers the world, and China in particular, political and economic stability in the context of an international financial crisis, Garcia said, adding that Peru exudes confidence, "which generates interest in our country abroad." This spirit is linked to its "responsibility in political leadership, trust in the responsibility of economic management, and the fiscal and economic balance that Peru maintains," Garcia said. "We offer stability and the assurance that our currency will remain strong and not run the risk of other currencies of the continent and the world, where investments soon lose half or more of their value as a result of terms and world prices," he said. "We take this opportunity to address Chinese businessmen and, through them, other big, medium and small businesses in China, and invite them to invest in Peru. Whomever should bring their machines, their technology and resources, can have the security that the Peruvian government will do everything necessary to preserve the value of their investment, we guarantee it," he added. At present, the Asian country is the second largest market for Peruvian exports after the US. Bilateral trade between both nations generated over USD 6 billion in 2007. The main products exported to China are minerals, fishmeal and agro-industral products (asparagus, citrus).